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Agenda Packet_2024-07-16 (Revised)
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Agenda Packet_2024-07-16 (Revised)
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Clerk of the Council
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7/16/2024
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DocuSign Envelope ID:9822D5D4-600B-4A67-B07F-02E780760E1B <br /> EXHIBIT E <br /> UTILITY USERS TAX FOR ELECTRIC, GAS &TELECOMMUNICATIONS SERVICES <br /> SECTION I: SCOPE OF SERVICES <br /> 1. SUPPORT &INDUSTRY MONITORING SERVICES <br /> 1.1 Hinderliter,de Llamas and Associates("HdL")shall actively monitor federal and state industry <br /> and legislative events which may impact UUT revenues, keep the City informed, and make <br /> recommendations regarding advocacy or other response as appropriate. <br /> 1.2 Prepare biannual revenue estimates and include assumptions. Represent the City for the <br /> purpose of obtaining information from utility providers to assist with preparation of revenue <br /> estimates. Schedule biannual meetings with staff to review the estimates and assumptions <br /> 1.3 Provide analysis reports on the utility provider community and reporting details including <br /> utility trends, provider trends, revenue trends, and revenue forecasting utilizing the City <br /> provided data. <br /> 1.4 Ordinance and Filing Procedure Review—analysis of UUT ordinances and the City procedures <br /> to identify possible deficiencies, areas subject to legal challenge, or missing best practice <br /> provisions. <br /> 2. AUDIT SERVICES <br /> 2.1 Overall Tasks <br /> a. HdL shall conduct audits in accordance with the City's Municipal Code (Chapter 35, <br /> Article VI), based on an agreed-to plan and schedule. The audits will include <br /> corresponding franchise fees as applicable.HdL shall represent the City for the purpose <br /> of examining records related to the applicable tax and fee revenue. Schedule meetings <br /> with staff as needed <br /> b. HdL shall contact the City's staff and obtain documentation required to kick off the <br /> project. <br /> c. Review the City's municipal code related to utility users' tax to understand the <br /> definition of gross revenues and the determination of utility users' taxes. <br /> d. Prepare initial data requests to the utility companies and the City requesting <br /> information related to the review period. During the project, if needed, prepare <br /> additional data requests and submit them to the utility companies. <br /> e. Execute non-disclosure agreements (NDAs)with the utility companies,if required. <br /> f. Correspond with the utility companies and the City, as required via phone and email, <br /> to obtain documentation,resolve issues,and obtain any appropriate assistance. <br /> 2.2 Review of Utility Users' Taxes <br /> a. Verify that the accounting methodologies and procedures used by the Companies <br /> accurately identify billed revenues generated within the City during the review period <br /> subject to the utility users' taxes. Investigate any inconsistencies and provide <br /> recommendations,if applicable. <br /> b. Review payments to the City and recalculate the utility users' taxes for the review <br /> period. <br /> c. On a test basis,reconcile billed revenues submitted as supporting documentation with <br /> the tax payments to revenues recorded on the audited financial statements or equivalent <br /> reporting information. <br /> City Council 23 — 30 7/16/2024 <br />
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